Assuming a 40% tax rate, what is Threshold worth?(Note:The "Profit (loss) from racing events" line in Exhibit 3 comes from Exhibit 2.Also, Exhibit 3 has some issues with terminology.The "Net profit" line is not really net profit.Moreover, it would be better to use "revenue" in place of "income".Also, there is a major error in the choice of items to list under "Expenses".See if you can spot the error and correct for it in your analysis.Your analysis will require use of the growing perpetuity/constant growth model in order to estimate a terminal value for your cash flows.Show your work for this question in an Excel attachment.)

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